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Regulators in Singapore and the EU Agree on Mutual Recognition for Derivatives Platforms

On April 1, the European Commission (EC) and the Monetary Authority of Singapore (MAS) published a joint media release announcing their concurrent adoption of equivalence decision for certain trading venues in the European Union and Singapore.

The decision will allow EU investment banks to operate as swaps dealers in Asia when executing derivatives with counterparties in Singapore, while complying with the EU trading obligations under the Markets in Financial Instruments Regulation (MiFIR) and the G20 reforms for standardized derivatives. Singaporean participants also will be able to trade with EU counterparties on EU multilateral and organized trading facilities in compliance with Singapore’s derivatives trading obligations.

The decision follows the agreement jointly announced on February 20 by the EC and the MAS regarding their common approach on certain derivatives trading platforms, the aim of which is to connect the two markets to boost liquidity and to help firms hedge their exposure to currency risks. It also follows a similar decision made between the MAS and the Commodity Futures Trading Commission made on March 13, as reported in the March 15, 2019 edition of the Corporate & Financial Weekly Digest.

The decision takes the form of an implementing act, which goes into effect on the day following its publication in the Official Journal of the European Union.

The EC’s and MAS’ joint media release is available here.

The implementing act is available here and its annex is available here.

©2019 Katten Muchin Rosenman LLP

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John Ahern, Financial Attorney, London, Katten Law Firm
Partner

John Ahern, partner at Katten Muchin Rosenman UK LLP and head of the London Financial Services group, focuses his practice on banking, financial services, UK and European financial markets, and related regulations. His background in private practice and as in-house counsel at a global investment bank provides him with perspective on the unique regulatory issues facing the wholesale and private banking sectors. John advises multilateral trading facilities, broker-dealers and banks on trading, clearing and settlement as well as custody of securities—both physical and...

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Carolyn H. Jackson, International Attorney, Katten Muchin law firm
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Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws and regulations. 

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Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
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Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring...

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Neil Robson, private equity fund managers counselor, Katten Law Firm, London
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Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...

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